Udemy (NASDAQ:UDMY) Shares Gap Down – Time to Sell?

Udemy, Inc. (NASDAQ:UDMY)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $8.45, but opened at $7.91. Udemy shares last traded at $7.85, with a volume of 322,620 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on UDMY shares. Scotiabank started coverage on Udemy in a report on Thursday, December 5th. They set a “sector outperform” rating and a $10.00 price objective on the stock. Needham & Company LLC reissued a “buy” rating and issued a $11.00 target price on shares of Udemy in a research note on Friday. Cantor Fitzgerald decreased their price objective on Udemy from $18.00 to $11.00 and set an “overweight” rating for the company in a research report on Wednesday, October 30th. Finally, Morgan Stanley downgraded shares of Udemy from an “equal weight” rating to an “underweight” rating and decreased their target price for the company from $10.00 to $7.50 in a research report on Friday, September 27th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $10.92.

Udemy Stock Down 6.6 %

The company has a market capitalization of $1.15 billion, a P/E ratio of -12.52 and a beta of 1.87. The company has a 50 day simple moving average of $8.20 and a two-hundred day simple moving average of $8.09.

Udemy (NASDAQ:UDMY) last posted its earnings results on Tuesday, October 29th. The company reported $0.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.01 by $0.06. Udemy had a negative return on equity of 29.36% and a negative net margin of 12.33%. The company had revenue of $195.42 million during the quarter, compared to analyst estimates of $192.69 million. During the same quarter in the prior year, the business earned ($0.10) earnings per share. Udemy’s revenue was up 5.8% on a year-over-year basis. As a group, research analysts expect that Udemy, Inc. will post -0.47 EPS for the current fiscal year.

Insider Buying and Selling at Udemy

In related news, CEO Gregory Scott Brown sold 10,000 shares of Udemy stock in a transaction that occurred on Friday, December 6th. The shares were sold at an average price of $8.71, for a total value of $87,100.00. Following the completion of the sale, the chief executive officer now owns 1,183,086 shares in the company, valued at approximately $10,304,679.06. This trade represents a 0.84 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Eren Bali sold 35,518 shares of the company’s stock in a transaction on Wednesday, November 6th. The stock was sold at an average price of $9.00, for a total value of $319,662.00. Following the transaction, the chief technology officer now owns 2,225,532 shares in the company, valued at $20,029,788. This trade represents a 1.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 55,518 shares of company stock valued at $491,762. Corporate insiders own 3.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sea Cliff Partners Management LP increased its stake in Udemy by 27.9% in the second quarter. Sea Cliff Partners Management LP now owns 3,725,865 shares of the company’s stock valued at $32,154,000 after purchasing an additional 811,702 shares during the last quarter. Summit Trail Advisors LLC boosted its position in shares of Udemy by 939.8% in the 3rd quarter. Summit Trail Advisors LLC now owns 366,795 shares of the company’s stock valued at $2,729,000 after purchasing an additional 331,521 shares during the period. Verition Fund Management LLC acquired a new position in shares of Udemy in the 3rd quarter valued at $1,630,000. Algert Global LLC raised its stake in Udemy by 150.8% during the 2nd quarter. Algert Global LLC now owns 238,672 shares of the company’s stock valued at $2,060,000 after acquiring an additional 143,498 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its holdings in shares of Udemy by 106.5% in the third quarter. Assenagon Asset Management S.A. now owns 242,791 shares of the company’s stock valued at $1,806,000 after acquiring an additional 125,235 shares in the last quarter. Institutional investors and hedge funds own 79.48% of the company’s stock.

Udemy Company Profile

Udemy, Inc, a learning company, that operates a marketplace platform for learning skills in the United States and internationally. The company offers skill acquisition, development, and validation courses for organizations and individuals, through direct-to-consumer or Udemy Business offerings in various languages.